Blue Lake Gas Storage Company

First Revised Volume No. 1

Effective Date: 04/01/2003, Docket: RP00-324-001, Status: Effective

First Revised Sheet No. 57 First Revised Sheet No. 57 : Effective

Superseding: Original Sheet No. 57

RATE SCHEDULE MS

MERCHANT SALES

1. APPLICABILITY

This Rate Schedule MS shall be applicable to all firm and

interruptible sales services rendered by Blue Lake Gas Storage Company

("Seller") under the blanket certificate of public convenience and

necessity granted to Seller pursuant to 18 C.F.R. Section 284.284(a) and

Order 636.

2. AVAILABILITY

Service under this Rate Schedule shall be available, pursuant to

the term of Seller's blanket sales certificate, to any Gas purchaser

("Buyer") which has executed a Sales Service Agreement with Seller.

3. SALES SERVICE AGREEMENT

Sales service under this Rate Schedule shall be available only on

the condition and to the extent that Seller and Buyer have agreed to

such service and have executed a written Sales Service Agreement that

contains the terms, conditions, rates and fees applicable to such

service. Seller shall have no obligation to provide sales service for

any quantity of Gas in excess of that specifically agreed to in the

Sales Service Agreement and such obligation shall be coextensive with

the term of the agreement. In accord with 18 C.F.R. Section 284.285,

Seller is authorized to abandon the sales service to which the Sales

Service Agreement relates upon termination of such Agreement without

obtaining any additional approval of the Federal Energy Regulatory

Commission for such abandonment.

4. TERMS, CONDITIONS, RATES AND FEES

The terms, conditions, rates and fees applicable to service under

this Rate Schedule shall be those terms, conditions, rates and fees to

which Seller and Buyer have agreed in their Sales Service Agreement.

5. POINT OF SALE

The point of sale for all Gas sold by Seller to Buyer under this

Rate Schedule shall be (a) any point at which the Gas enters Seller's

system, or (b) any point at which Seller's system interconnects with

that of another pipeline.

6. TRANSPORTATION

Gas purchased by Buyer from Seller under this Rate Schedule shall

be transported pursuant to the terms of separate transportation

agreements.